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Retail round up of news. Online shopping, Christmas spending, Tesco and designer fashion

Steve Smith's picture

Among the retail news that caught my eye this week, I wanted to draw your attention to these stories

Debenhams and Ocado in joined up thinking. Will help to drive mobile shopping

Debenhams is designing a system that will track people’s behaviour across different channels and recognise when shoppers log on to them.

This should facilitate a more personalised service and more targeted marketing experiences. It is an alternative to Facebook login used by many other brands, which facilitates similar activities.

One of these brands is Ocado, which has just launched a service that enables shoppers to use their Facebook profiles to shop at Ocado. This will continue to build Facebook as a service through which people are able to investigate and buy products.

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Given that over 11m browsed retail sites on their mobile phone in July (comScore) there is certainly a desire among many people to use their mobile devices for shopping related activities. Making shopping via mobiles simpler and easier (as the Debenhams and Ocado innovations will do) is very likely to encourage further and more deeper experiences with retailers, including purchase.

Spending to dip this Christmas

In news that food price inflation has hit a nine month high, hitting.6% in November, cash-strapped UK households are likely to dramatically reduce their spending this Christmas. Ahead of our own research to be published about which supermarkets will be hit hardest, YouGov says households will make the biggest savings this year on food and drink, with a projected spend of £161 compared to £176 last year.

Tesco’s likely to sell Fresh & Easy

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After investing £1bn in Fresh & Easy since its inception five years ago, Philip Clarke on Wednesday said that Tesco would initiate a strategic review of the business that is likely to lead to its sale. Analysts believe the brand will have incurred cumulative losses of about £850m by February next year.

It is likely that Walmart is a potential buyer of some Fresh & Easy assets. This would facilitate the world’s biggest retailer in its move to open smaller stores in the US.

Demonstrating how the sale will please investors, shares rose 3% on the news.

Amazon launches upmarket fashion store. Opportunities for supermarkets

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Amazon UK opened its Premium Store on Monday, which sells high end clothing from the likes of Giorgio Armani, Vivienne Westwood, and McQ by Alexander McQueen. Initially, the Premium Store will only stock womenswear. However, it is likely that Amazon will eventually move into menswear.

Amazon will want to poach customers from the likes of Net a Porter which has grown its business massively over the last two years. However, our own research shows that even buyers of high end fashion complement their purchases with high street brands, which opens up opportunities for supermarkets to better cater for these people.

Mobile Update #33

Roberto Agosti's picture

This week’s update looks at a few hefty spheres in the mobile space: source of internet access, Apps vs mobile web, and m-commerce.

Mary Meeker’s presentations tend to create quite a bit of buzz and this time was no different. Recently released she reinforces her views around the strength of evolving behaviour with mobility at the core, definitely worth a look for some great stats and insights.

With so many messaging options in the market one has to ask themselves how long the sturdy SMS will remain the norm? It doesn’t seem to be in danger of fading anytime soon but the mobile instant messenger market comprised of the likes of FB messenger and WhatsApp is certainly looking to challenge however fragmentation in this space does hinder.

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And the perennial debate of App vs. mobile web…in typical fashion both formats have their share of strengths and weaknesses however great to see this ecosystem so alive and healthy. Will we see drastic differences of sources of internet access vary by country? Level of mobile penetration? Culture?

Also, m-commerce seems to be that final step that will really fuel company confidence in mobile as a channel. While m-commerce at POS continues to struggle in most markets, certainly not helped by Apple’s decision to not include NFC in their iPhone 5, South Korea bumps this trend with impressive mobile NFC payments figures recorded this year.

While all these issues will take some time to settle no one can argue it isn’t exciting. On a final note the differences we see between mobile usage and behaviour in the developed vs developing world continue to amaze with how innovative people can be when using the same technology in different states of progress.

Mary Meeker's Latest Must-Read Presentation On The State Of The Web

Date 03rd December, 2012

Presentation to see via the below link.

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Mobile Internet traffic gaining fast on desktop Internet traffic

Date 03rd December, 2012

Mobile traffic is growing so fast globally that in some places it has already surpassed desktop traffic. That was one of the key conclusions of a year-end Internet trends report delivered this evening at Stanford University by Kleiner Perkins venture capitalist Mary Meeker. Once known as "Queen of the Net," Meeker reported that 13 percent of all Internet traffic is now executed from a mobile device, up from 4 percent just two years ago. In tech-savvy India, mobile Internet traffic has reached 60 percent, surpassing desktop Internet traffic, which has declined to 40 percent.

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Mobile Update #32

Michael Vitello's picture

This week’s update will go a bit beyond just mobile. As you may have heard already, Microsoft is looking to patent glasses that deliver augmented reality in users' views of the world. They said that the glasses could prove useful in a variety of situations, providing examples of sports matches, business conferences, or when users are travelling in cities they don’t know.

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Sounds familiar right? Indeed, the Microsoft product would rival Google's Project Glass: augmented reality glasses expected to be released to developers next year, with a commercial launch planned for 2014.

2013 is predicted to be Microsoft’s year with the launch of Windows 8 and all the devices that come with it. In addition to that, Apple, a direct competitor, has a few problems to worry about as Samsung just announced they will stop the production of batteries for Apple products… The question is, will Samsung continue to stop producing all the other components it also produces for Apple and could this hinder its own revenue? Is it worth sacrificing this business to kill the competition?+

But back to glasses! Interestingly enough, a recent Juniper Research market report suggests smart glasses and other wearable tech could be worth $1.5 billion (£935 million) worldwide by 2014, with sales expected to boom thereafter.

Let’s hope that Microsoft glasses won’t be like this…

On another note and because we are advertisers, we should be threatened by this project funded on KickStarter which appears to be the ultimate box to… get rid of digital ads.

The creator has already reached his money goal of a $150,000 and he has 10 days left to potentially double it. The “good” thing about this box is that it blocks ads from the modem, even before they reach any of your connected devices, whether it’s your classic desktop PC or your brand new Kindle tablet…

If you want to know more about the project it’s here.

Finally, a little gift from us to start embracing the Christmas spirit! If you’re an Apple fan (not to say nerd), a user has created a YouTube channel where you can watch EVERY SINGLE Apple TV ad.

Brilliant work representing Apple’s culture in 485 videos.

2013 will be Microsoft’s year

Date 28th November, 2012

2013 will be the year that Microsoft becomes relevant once again. It will begin to use its dominant position on the desktop and in gaming to build an exciting ecosystem that will make Microsoft a compelling choice for consumers, and by extension an increasingly important advertising partner for marketers. Studying trends is very useful when making predictions because a prediction in essence, should be the observation of a trend with the expectation that it will continue at a certain pace, to materially change the reality of the people who will live that change.

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U.K.’s First 4G Network, EE, Increases Data Limits By ~60% On Some Mobile Broadband Price-Plans; Still No Unlimited Data Tariffs

Date 28th November, 2012

The U.K.’s first — and currently only — 4G network, run by carrier EE, has announced it is increasing the size of the data caps on some of its mobile broadband tariffs by around 60 percent, while keeping its pricing structurethe same. The network has faced criticism for offering relatively small monthly data caps for a high-speed network — caps that could be hit rapidly by people using the network to stream or download rich content like video.

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In-store technology provides Tesco with opportunity for poaching

Steve Smith's picture

Tesco is trialling an interactive touchscreen at its Cheshunt Extra store in the run up to Christmas and into the new year. The screen is 80 inches across, giving shoppers interactive access to more than 11,000 products.

With Christmas approaching, shoppers will be able to use the screen to browse the full range of toys that are available on tesco.com, and filter by age, sex and price. Customers can then place an order by printing a ticket for Click and Collect. Interestingly, and in a further drive to build familiarity with using mobiles for shopping, people will be able to use their smartphones to scan on screen QR codes to order goods.

Enabling customers to use their smartphones for purchases provides Tesco with an innovative way for it to facilitate the shopping process, and led me to look at the shares of supermarkets’ customers who would be willing to try out the new service.

Looking at the chart below, Tesco can expect a high incidence of use were it to roll out the service more widely across its stores. 11.5% of Tesco customers use their smartphones in-store to facilitate shopping. Of smartphone owners who shop at the supermarket, this rises to 21.3%. If Sainsbury’s and ASDA were to do the same, they could expect even higher rates. But if Tesco were to move quickly, then it would provide an opportunity for Tesco to draw in customers from its rivals.

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As a footnote, it’s when we look at people living in Cheshunt and the surrounding area that we can see why the supermarket chose this branch to trial this:

  • A full third of people who live in Cheshunt and the surrounding area who shop at Tesco like to use their smartphone in-store to research products.
  • Of smartphone owners who shop at Tesco, this rises to an incredible 56%.

Source: Touchpoints 2012

Mobile Update #31

Roberto Agosti's picture

Now it's all about Christmas and worrying about all those presents you need to buy for your various acquaintances. This week the spotlight will very much be on articles surrounding m-commerce in its various forms.

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Every holiday season results in a massive boost for mobile as people buy/upgrade their devices and make purchases via their mobile platforms. Tablets received a massive boost last holiday season and analysts are betting on a repeat. With a host of tablet options available it will be interesting to see marketshare once the holiday rush has settled a little. Important to remember that it's the retailers embracing this digital age, not being threatened by it, that are providing value to their customers via raising awareness of location specific offerings and enabling valuable in-store experiences through their customers mobile devices.

Finally, the mobile phone is doing a fairly good job of providing a camera for the masses, will the camcorder last much longer?

Smartphones Hit the Holidays

Date 20th November, 2012

More than half of US smartphone and tablet users plan to use their devices for holiday shopping, research indicates, and they are willing to actually buy more items via mobile this holiday season than ever before.

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PayAnywhere jumps into mobile-payment ring

Date 19th November, 2012

Square and PayPal have a new, national competitor in the crowded market for mobile-payment credit card readers. It's PayAnywhere.

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Mobile Update #30

Michael Vitello's picture

Nowadays, Apple and Samsung are really the top dogs in the smartphone world while HTC and LG are left fighting over the scraps. Smartphones are pretty popular but it seems that very few companies know how to actually make money selling them… Also, BlackBerry manufacturer Research in Motion (RIM) will unveil its first two (YES, you read two) smartphones running on the new BB10 operating system in January.

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RIM said it will hold a launch event simultaneously around the world for the unveiling – which will also coincide with the official launch of the much delayed (VERY much delayed) BB10 OS. Reuters has been told that the company is “working hard right now to make sure all the bits and pieces and all the details are in place” for the launch.

So now you’ve got to start thinking about which phone to choose as the decision will become less easy. Will you go for the longer but lighter, thinner but faster iPhone 5? The Samsung beast called the GS3…Or will you finally go for the bright red or flashy yellow Nokia Lumia 920 with the colourful Windows 8 operating system? But wait, what if the BlackBerry 10 operating system will bury the hatchet between you and BBM, even between you and your professional emails?!

Now you’re starting to realise how painful and (extremely) expensive Christmas might be for you this year. Your beloved father in-law wants a smart TV, your daughter wants a new iPhone (obviously your son prefers the Nokia), then your wife wants the new iPod Nano and your sister wants an iPad Mini… And the list goes on.

Have a nice week,

PS: Time to start thinking about saving.

Six reasons content marketers need to think mobile

Date 13th November, 2012

The world has fallen in love with their smart phones and tablets. People talk about having an emotional connection with their devices. The iphone 5 promo video described it as a “unique relationship”. Keith Nation from ORM London says this is because: “They are always on you and they are always on”. American advertising consultant Cindy Gallop said at a recent Guardian marketing summit that: “People turn on their phones all the time to get little pellets of love. They want to see that people want to be in touch with them”.

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RIM sees BB10 devices in stores soon after launch

Date 13th November, 2012

(Reuters) - Research In Motion is confident its new BlackBerry 10 devices will be 100 percent ready for the January 30 launch and available in stores "not too long after" that, Chief Operating Officer Kristian Tear said on Tuesday. "We're working hard right now to make sure all the bits and pieces and all the details are in place for the date, when the devices will be available for consumers and enterprises," Tear told Reuters in an interview.

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Mobile Update #29

Roberto Agosti's picture

Have Apple begun to fade a little? There is no doubt that they are, and will, remain a hugely successful company however there seems to have been a few missteps (maps) and decisions of late (iPad 4) that put into question their ability to truly inspire. Their products remain a thing of beauty however their current spate of improvements seem less ground-breaking and more like refinements. Will this satisfy a market that is accustomed to being astounded with their every announcement? With increased competition coming from all sides will they retain their position as the mobile 'untouchables'?

This leads on nicely to a few developments in the Android camp. Typically it's been observed that Apps are designed for iOS first with Android a close second. There may be a shift in these positions as payments trends move towards a freemium model. This would allow developers to leverage the greater scale of the Android userbase that have been historically more adverse to paying for initial access to Apps.

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The dust has settled a little after all the Microsoft announcements of last week however rumours surrounding their future mobile ventures still very much remain at the forefront. Whispers mention another tablet, gaming focused, and potential mobile phone hardware.

Finally, a few articles on M-payments and increase of internet traffic across mobile devices. QR codes, remember those? Well a few guidelines on what to think about with them below and lastly Foursquare vs. Yelp, who shall be victorious?

We've passed peak Apple: it's all downhill from here

Date 7th November, 2012

The story of Apple Incorporated is far from over. It is the most valuable company in the world, by a large margin. Apple produces a range of exceptional and much loved products. It employs many of the most talented designers and engineers on the planet. But I think Apple has peaked and the story of the next few years will be one of a slow but real decline.

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Android app revenue on the rise, closing gap with iOS

Date 7th November, 2012

For a while now, developers looking to make serious money selling their apps were better off trying their luck at Apple’s (AAPL) App Store than with Google (GOOG) Play. But over at Tech-Thoughts, Sameer Singh has found some new data suggesting that in-app purchases are likely helping Google Play close the gap.

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iPad is now the biggest source of non-PC internet traffic in the UK

Scott Thompson's picture

With Apple's latest reported figures of over 98 million iPads sold by the end of September, and 3 million sold in the 3 days following the launch of the iPad mini last week, Apple have now sold over 100 million iPads in two and a half years. Considering the 80 days it took to sell the first 3 million iPads, it is safe to say that demand is still increasing – with the 3G/4G network enabled models yet to go on sale. With the iPad mini now offering lower cost and greater mobility than the 'full sized' iPad – and 7" tablets from Google and Amazon competing strongly on price, it is hard to see Tablet growth slowing down for some time yet.

Figures from a new report from comScore show that tablets are accounting for a growing amount of internet traffic. In fact, in August 2012, iPads accounted for more internet traffic than either iPhones or Android devices, making them the largest single source of non-PC internet traffic in the UK.

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Apple don't break out their sales figures for different iPad models or sales in different countries, but comScore estimate that in August 2012, there were about 4.7 million iPads in the UK, out of a total of 6.26 million tablets – showing a 155% growth in the UK market in 12 months.

The comparison of just 4.7 million iPads accounting for more internet traffic than around 12 million Android phones might be surprising, but it highlights one of the challenges that we have as researchers in really understanding the behaviours around this new class of devices. While tablet operating systems are essentially the same as smartphones (ie. designed for a single user to have access to email, applications etc.), there is a great deal of shared usage between devices, making it hard to attribute particular usage patterns to individuals within a household. Understanding the nuances of how Tablets are being used differently – both patterns of different uses by different types of people, as well as different types of devices – is a significant and important challenge facing media researchers as the growing market develops.

Obviously, communication is still the primary use of a mobile phone, but with 27m smartphone owners using them as 'connected media' devices, 11m watching mobile video and 7.9m using them to find store locations, mobile media is an increasingly important space.

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Although Google's Android platform accounts for the largest share of devices in the UK with 44% of smartphones, iPhones account for a greater amount of internet usage with 25% of non-PC internet traffic going to Apple phones (compared to 23% to Android phones.)

Mobile Update #28

Michael Vitello's picture

The below snapshot could sum-up what was qualified as the official Windows Phone 8 announcement. Headed by Microsoft Corporate VP Joe Delfiore, the CEO Steve Balmer AND Mademoiselle Jessica Alba, a few mobile (male) geeks would say it was a success. You still can't see why?

Well,... apart from the Alba effect, this week in mobile has been indeed dominated by Microsoft and its new product (Windows Phone 8 obviously...).

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But don't tell me you just pre-ordered your Surface tablet and forgot that Apple announced the iPad Mini a few weeks ago? Even if Microsoft was very active recently, other mobile players have not been lazy! A war against the new Apple tablet, the Amazon Kindle Fire and the Google Nexus 7 is about to begin and the mobile market itself is, as usual, still growing with global smartphone shipments rising 45% Year-on-Year in Q3 2012 as well as tablets shipments by 45%.

Moreover, EE's superfast service (4G) just launched in the UK and it is covering 11 major UK cities and they expect to have at least 98% of the country covered by the end of 2014

Finally, the inner Santa in us will be making us splurge more this Christmas, and as trends suggest, this will be happening increasingly via smartphones and tablets!

Mobile paid search gives higher CTR than desktop: report

Date 31st October, 2012

Paid search CPCs in the US were around 50% cheaper on smartphone than on desktop in Q3, according to data from The Search Agency. CPCs on smartphones stood at 31 cents compared to 49 cents on tablet and 59 cents on desktop, meaning the level of discount offered on smartphone is roughly the same as Q3 2011. This is despite the fact that smartphone ads apparently have a much higher CTR than both computers and tablets.

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Smartphone and tablet ownership rockets

Date 26th October, 2012

A survey by the Mobile Operators Association and YouGov shows smartphone ownership has doubled in less than a year. Over half (58 percent) of mobile phones in the UK are smartphones, and 20 percent of adults own a tablet, a survey has found. The findings from the Mobile Operators Association (MOA) and YouGov also show that emailing and accessing social networks are the most popular activities for mobile phone users, with 43 percent and 40 percent using their device for each respectively.

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